Construction employment declined in 91 metro areas and was stagnant in another 24 between February 2020, the last month before the pandemic, and May 2021, according to an analysis by the Associated General Contractors of America of government employment data released today. They said the high number of metro areas losing construction jobs during that time frame reflected the impacts of early pandemic shutdowns and more recent challenges procuring construction materials and finding qualified workers to hire.
“The devastating job losses of early 2020 and more recent materials and labor challenges since then have kept industry employment stagnant or lower this May than in February 2020 in nearly one-third of metros,” said Ken Simonson, the association’s chief economist. “Extreme lead times for producing and delivering materials, along with record prices for many items, has led to project delays and cancellations that have chilled hiring.”
Of the 91 metro areas with lower construction employment in May 2021 than in February 2020, Houston-The Woodlands-Sugar Land, Texas lost the most jobs: 30,500 or 13%. Major losses also occurred in New York City (-21,200 jobs, -13%); Midland, Texas (-9,600 jobs, -25%) and Odessa, Texas (-8,300 jobs, -40%). Odessa had the largest percentage decline, followed by Lake Charles, La. (-36%, -7,200 jobs); Midland; Laredo, Texas (-23%, -900 jobs) and Longview, Texas (-22%, -3,300 jobs).
Construction employment increased in 243 metro areas compared to the February 2020 level—far fewer than the 320 metros that typically add construction jobs between February and May, Simonson noted. Minneapolis-St. Paul-Bloomington, Minn.-Wis. added the most construction jobs over 15 months (11,100 jobs, 14%), followed by Indianapolis-Carmel-Anderson, Ind. (10,900 jobs, 21%); Chicago-Naperville-Arlington Heights, Ill. (10,300 jobs, 9%); Seattle-Bellevue-Everett, Wash. (6,900 jobs, 7%); and Pittsburgh, Pa. (6,900 jobs, 12%). Fargo, N.D.-Minn. had the highest percentage increase (45%, 3,300 jobs), followed by Sierra Vista-Douglas, Ariz. (44%, 1,100 jobs); and Bay City, Mich. (36%, 400 jobs).
Association officials said that many construction firms report challenges with rising materials prices, supply chain problems that are leading to delivery delays for key components and challenges finding qualified labor to hire. They urged the Biden administration and Congress to work together to remove tariffs on key construction materials, ease supply chain shortages and boost investments in career and technical education. They added that the association posted an updated Construction Inflation Alert to inform owners and officials about the worsening problems with rising materials costs, shipping delays and labor shortages.
“It is hard for the construction industry to grow while firms struggle to pay for and source key materials and have a hard time finding qualified workers to hire,” said Stephen E. Sandherr, the association’s chief executive officer. “Federal officials can help the industry and boost the economy by removing tariffs, easing supply chain backups and investing in workforce development.”
View the metro employment data, rankings, top 10, multi-division metros, and map. View the Alert.
Related Stories
Market Data | May 10, 2022
Hybrid work could result in 20% less demand for office space
Global office demand could drop by between 10% and 20% as companies continue to develop policies around hybrid work arrangements, a Barclays analyst recently stated on CNBC.
Market Data | May 6, 2022
Nonresidential construction spending down 1% in March
National nonresidential construction spending was down 0.8% in March, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau.
Market Data | Apr 29, 2022
Global forces push construction prices higher
Consigli’s latest forecast predicts high single-digit increases for this year.
Market Data | Apr 29, 2022
U.S. economy contracts, investment in structures down, says ABC
The U.S. economy contracted at a 1.4% annualized rate during the first quarter of 2022.
Market Data | Apr 20, 2022
Pace of demand for design services rapidly accelerates
Demand for design services in March expanded sharply from February according to a new report today from The American Institute of Architects (AIA).
Market Data | Apr 14, 2022
FMI 2022 construction spending forecast: 7% growth despite economic turmoil
Growth will be offset by inflation, supply chain snarls, a shortage of workers, project delays, and economic turmoil caused by international events such as the Russia-Ukraine war.
Industrial Facilities | Apr 14, 2022
JLL's take on the race for industrial space
In the previous decade, the inventory of industrial space couldn’t keep up with demand that was driven by the dual surges of the coronavirus and online shopping. Vacancies declined and rents rose. JLL has just published a research report on this sector called “The Race for Industrial Space.” Mehtab Randhawa, JLL’s Americas Head of Industrial Research, shares the highlights of a new report on the industrial sector's growth.
Codes and Standards | Apr 4, 2022
Construction of industrial space continues robust growth
Construction and development of new industrial space in the U.S. remains robust, with all signs pointing to another big year in this market segment
Reconstruction & Renovation | Mar 28, 2022
Is your firm a reconstruction sector giant?
Is your firm active in the U.S. building reconstruction, renovation, historic preservation, and adaptive reuse markets? We invite you to participate in BD+C's inaugural Reconstruction Market Research Report.
Industry Research | Mar 28, 2022
ABC Construction Backlog Indicator unchanged in February
Associated Builders and Contractors reported today that its Construction Backlog Indicator remained unchanged at 8.0 months in February, according to an ABC member survey conducted Feb. 21 to March 8.
